Afraid of Credit Card Fraud?
Facing the terror of decline while using credit card means either you are spending so much money that you have maxed out its limit or you have been victimized by the ‘horror’ of credit card fraud.
Our ears have become quite used to listening bizarre stories of outrageous frauds that happen often.
How can we prevent credit card fraud?
Here is a list of safety measures you can follow in order to avoid banking frauds: 1.
Sharing of personal information should be avoided.
Any genuine call from bank will never ask for your pin or OTP over phone conversation.
3. Credit card is more preferable than debit card when shopping online.
Phishing is a trick in which pop-ups or spam emails mimic actual banks or businesses and obtain your personal details, taking advantage of which they can carry out the misdeed.
One should be beware of phishing to avoid such condition.
Afraid of Credit Card Fraud?
Credit card fraud costs Aussies $450 million each year.
Tap-and-Go credit card fraud alone cost Aussie cardholders $40 million last year, but Victoria Police have admitted it wouldn’t be worth shoppers reporting the fraud, revealed the Herald Sun.
In the last financial year, thieves made off with over $400 million in fraudulent debit or credit card transactions, but top fraud investigator Superintendent Pat Boyle said thousands of fraud cases go unreported every year.
Top tips to combat credit card fraud Pick a tricky PIN.
Your PIN should be a number that you’ll remember easily (so you don’t have to write it down) but that no one else will guess.
Usually there’ll be a padlock icon in the address bar to let you know the page is safe.
When using your card in a shop, restaurant or bar, keep your eye on it at all times (avoid leaving it behind the bar).
If you think you’re a victim of credit card fraud Report it to your bank.
Update your security details.
It may not be at the top of your priority list, but make sure you check in on your credit report after a case of fraud to see that it hasn’t been recorded as a black mark against you.
In recent years, major credit card data breaches have been reported by some of the largest restaurant chains in the United States According to IBM and the Ponemon Institute, the average cost of a data breach is $158 per compromised record, and well over $6 million for attacks involving 50,000 or more records.
Here are four specific technologies that restaurant executives should consider implementing to ensure the best possible protection against credit card fraud and data theft.
Whether they look to accept mobile wallets or consider a semi-integrated approach for better security, EMV is just the beginning.
2) Point-to-Point Encryption (P2PE): The proven solution to reduce card data theft P2PE is a security solution that protects card data as it’s transmitted through the payment process from start to finish.
In the wake of high-profile credit card data breaches, which often exploit weaknesses in payment card systems, P2PE has become a standard method to secure card data from potential interception during payment processing.
For restaurants looking to provide customers with a secure, optimal experience, P2PE is a proven solution that can help you keep your customers’ sensitive information safe while protecting your company’s brand.
3) Tokenization: Multi-layered security to protect cardholder data Along with EMV and P2PE, tokenization is another important piece to a complete multi-layered security approach to protect your customers’ card data when it’s being stored by your business.
The tokens protect data at rest, such as card data being temporarily stored for purposes such as customer loyalty programs.
4) Mobile Point of Sale (mPOS)/Pay-at-the-Table: Enhancing customer experience while strengthening security One of the biggest trends in restaurant service is the ability to accept card payments at the point of service via mobile point of sale (mPOS).
Notably, many mPOS solutions are also EMV-enabled and offer P2PE and tokenization for added security, making them an ideal choice to protect customers and ensure PCI compliance.
The latest technological scheme gaining traction in Northeastern Pennsylvania strikes victims where it hurts most — their bank accounts.
Credit-card skimmers are small, sometimes hard-to-recognize devices that criminals plant at gas station pumps, ATMs, self-checkouts or any unattended place that someone might swipe their credit or debit card.
Protect your PIN, they advise.
While only two cases have been reported in Luzerne County, the scheme is worth watching out for in the area, local investigators say.
Lewis is investigating one of the reported card skimming cases in the area: a gas station on Route 115 in the township that was struck by a criminal who planted an internal device in May.
It’s easy to use someone’s PIN number and account number to access a lot of different accounts, and some of those have a lot of money in them.” Skimmers are becoming more prevalent nationwide because technology is cheaper and more readily available than ever before, officials said.
In another reported case in Luzerne County, police in Wilkes-Barre Township arrested a Taco Bell employee in January for allegedly stealing credit-card information from customers for more than a month.
While skimmers have been around for years, the technology to steal credit account information continues to improve, and devices have become smaller and harder to detect, said Owen, the Better Business Bureau official.
“But if it’s not detected and these thieves go and damage your credit report, that’s where it’s a long-term problem where it could take months or even years to fix.” To protect card info from skimmers, the Better Business Bureau advises consumers to avoid using ATMs in poorly lit or low-trafficked areas.
Consumer protections for debit and credit cards vary but depend largely upon when the fraudulent activity is reported.
These days, especially with the digital nature of our games, refund theft and chargeback fraud are two of the most common ways that developers are being hurt.
Return fraud involves returning games (or DLC) that are ineligible for refund to a retailer in exchange for money or other goods.
On the other hand, chargebacks cost $15 for each transaction and can put a company into a very special Visa Monitoring Program, which identifies merchants who have exceeded the Visa chargeback thresholds.
For instance, Steam has a refund policy in which they refund games for any reason.
Steam refunds players for the full amount of the game, which means the developer gets absolutely nothing but the player enjoys the game for free.
Chargeback Fraud Just last year, Ludeon Studios stopped issuing keys for new purchases of their game, Rimworld, due to concerns of credit card fraud.
On the other hand, U.S. merchants are eligible for the Merchant Chargeback Monitoring Program, which requires that merchants have at least a 1% chargeback ratio (a minimum of 100 chargebacks and 100 transactions in a month).
Only refund in the same form of currency used, and make sure that you offer store credit to eliminate, or at least limit cash refunds.
Using a protection service can help share, or even eliminate, the burden of having to manage fraud, so you can go back to doing what you do best—making games and talking to your community.
Otherwise, you won’t know until it is too late and your company is placed into the Visa Monitoring Program.
How machine learning is taking on online retail fraud.
ZDNet talked to fraud prevention startups Fraugster and Riskified to get their insights.
Seven percent of that is attributable to chargebacks; 74 percent is for fraud management software, hardware and employees; and 19 percent comes from false positives — transactions erroneously rejected as fraud.
Gal says this incentivizes Riskified to approve as many good transactions as possible, while its chargeback guarantee means it takes on fraud liability for every order it approves, requiring the company to accurately identify fraud attempts.
When we first launched Riskified, our entire service was identifying good orders that retailers planned to decline.
Laemmle says they found that all existing anti-fraud solutions were built on outdated technologies and could not deal with sophisticated cyber criminals: “Existing rule-based systems as well as classical ML solutions are expensive and slow to adapt to new fraud patterns in real-time, hence inaccurate.
This requires a lot of manual work.
This means they have to pre-segmentize the data, etc.
Riskified has invested significant resources into providing retailers with transparency into our ML decisions.
As we have noted before, transparency and ML approaches seems to be at odds at present.
Once that data is used to make a purchase, the consumer’s account will be charged.
How does fraud credit card transaction work?
Credit card fraud often occurs because the credit card transactions are way too simple.
At the beginning, those involved in the transaction (customer, card issuer, merchant and merchant’s bank) send and receive information to authorize or reject a given purchase.
If the purchase is authorized, it is settled by an exchange of money, which usually takes place several days after the authorization.
Then, the card issuer physically delivers the credit card to the consumer.
To make a purchase with it, the cardholder gives his card to the vendor (or, online, manually enters the card information), who forwards data on the consumer and the desired purchase to the merchant’s bank.
The card issuer’s final decision is sent back to both the merchant’s bank and the vendor.
Rejection may be issued only in two situations: if the balance on the cardholder’s account is insufficient or if, based on the data provided by the merchant’s bank, there is suspicion of fraud.
If you are in doubt, then I suggest that you don’t make the transaction.
4 Ways to Reduce Credit Card Chargebacks.
Credit card chargebacks — wherein shoppers purchase products with a credit card and then contest the charge from the credit card issuer — are an always-present threat to ecommerce merchants.
4 Ways to Reduce Credit Card Chargebacks Streamline shipping operations.
Alternatively, merchants that offer same-day shipping or next- or two-day shipping see fewer chargebacks, usually.
It’s customer service that often separates the successful sellers.
Do not harass customers who want to return products.
Sometimes chargebacks are the result of true fraud, where criminals use fraudulently obtained credit card information to make a purchase.
Guard against fraudulent chargebacks with a suite of customized fraud prevention tools that make sense for your business.
Merchants can work with their payment processor or other advisor to discover the best combination of tools for their business.
Some solution providers, such as Verifi and others, offer alerts or notifications when a chargeback is initiated, giving the merchant time to resolve the dispute with the cardholder rather than navigating through the convoluted chargeback process.
Beware of Fake Fraud Alerts.
Chances are you’ve gotten a fraud alert from your bank or credit card company asking you to verify that you’ve actually made a certain debit or credit transaction.
They do this when their security algorithms spot something that doesn’t seem right.
And the use of this computer technology does help reduce fraud – something we all pay for in the form of higher prices and interest rates.
But beware: Scammers are now trying to cash in on the spike in fraud alerts.
They’ll call or text and pretend to be the fraud department with your financial institution or credit card company.
They’re hoping they can trick you into giving them your account number or other personal information.
Your bank or credit card company already has your personal information and would never call you and ask your for it.
Hang up the phone, look at your card and call the number on the back.
By making that call yourself, you know you’re not talking to a scammer.
Reservation System Breach Affects Hard Rock Hotels & Casinos, Loews Hotels.
Along with death and taxes, data breaches are one of the only constants in this technology-driven world.
In this blog post, we’re talking about the SynXis system hack which affected multiple hotel chains using Sabre Hospitality Solutions’ reservation system.
Sabre Hospitality Solutions says an unauthorized party accessed its systems What happened: A number of hotels use third-party reservation and payment systems to run their businesses, and Sabre, which serves over 36,000 hotels and lodging services, is a giant among these third-party services.
Even among this subset, not all transactions included credit card security codes, and the company claims that some of its bookings were processed with virtual credit card numbers, which are one-time credit card numbers used to conceal a consumer’s true credit card number.
Who is affected: While the subset of customers identified through Sabre’s investigation are the only known victims so far, a handful of hotels have publically issued statements mentioning their usage of SynXis and explaining that they have customers who might have been directly affected by the breach.
Sabre also seems to have notified specific business partners, like Hard Rock Hotels & Casinos as well as Loews Hotels.
While neither of these chains stated that their internal systems were compromised, since both chains use SynXis, any Hard Rock or Loews customers who stayed at certain hotels between August 2016 and March 2017 may be impacted.
If you stayed in an impacted hotel, be sure to check your credit card statement and report any unfamiliar charges immediately, check your credit reports to confirm no new accounts were opened in your name and consider investing in an identity theft protection service, as it will help you keep track of who may or may not have your personal information.
You can start by regularly monitoring your credit reports as well as your credit card and bank account activity.